Farm transactions are much more intricate than typical residential property sales, you might say they are an entirely different animal by comparison. (Pun Intended).
It is important for both buyers and sellers to work with sales representatives that truly understand all the various issues that can arise from a farm transaction.
There are many different types of farms available on the market today which may include Subsistence Farms, Hobby Farms, and Commercial Farms. Each of these hold their own unique set of dynamics.
Here are some key things you will want to consider:
Zoning - What can be produced or what are the best uses for the farm?
Taxation - Is the farm or assets subject to HST?
Surface & Mineral Rights - Does the current owner hold title to all rights on the land?
Drainage - There are 3 different drainage statutes to consider when dealing with farm property.
Water Sources - Is there an adequate year-round supply to keep the farm in operation?
Regulations - There are many governing bodies overseeing all aspects of daily operations and final products.
Quotas - Closing dates should align with marketing board transfers.
Environmental Impact - Has the existing operation complied with all current regulations?
Financing - Assets and quotas can become key elements when securing a farm loan. You may even be eligible for various government grants. Are portions of the land leased out?
Assets - Is is important to list the assets being purchased with as much clarification as possible.
Surveys - Having an up to date survey can help avoid potential disputes with neighbouring properties.
Whether buying or selling, it is critical to partner with a sales representative who is willing to take the time to fully understand the various complexities associated with every aspect of the farming transaction.
By Kent Leckie & Desiree Clark
RE/MAX All-Stars Realty Inc., Brokerage - The Clark Kent Team